The term ‘brand purpose’ has shaken up the corporate world in recent years. Where previously the debate centred around profit vs purpose, we are now in a time where brands are unable to compromise on sustainability, accountability and empathy, thus brand purpose is playing a vital role in the success of organisations. Questions around how well brand purpose is being integrated into company operations still remain, as well as understanding what the real consequences of getting purpose wrong are.

All aboard the purpose ship 

In 2022, Unilever investor Terry Smith blamed the company’s underwhelming financial performance on their sustainability and brand purpose focus, labelling it as ‘ludicrous’.

Whilst not everyone is aboard the purpose ship, it is important to note that in order for brand purpose to succeed, it needs to be treated as a fundamental part of the organisation. This means from employee engagement to shareholder value and product/service design. The benefits of adopting a purpose driven focus can only be reaped when all parts of the business are included in the strategy. Merely adopting purpose into some aspects will not see results or profit — purpose needs to be at the heart of everything. 

Lessons from leading brands

Some brands who have a clear purpose have managed to turn over profit and also convert new customers segments. Patagonia has been somewhat of a brand-purpose trailblazer, with it initially starting as a rock-climbing brand which has progressively reached out to customers who were not necessarily interested in outdoor sports, but were interested in the philosophy and purpose of Patagonia as a brand. Leading brands like Patagonia, unsurprisingly, benefit more from embedding brand purpose than mainstream brands. But why is this the case?

Zone data shows that leading brands strongly agree that brand purpose delivers benefits in multiple areas. These include new customer acquisition, where 33% of leading brands strongly agree it benefits from brand purpose in comparison to 24% of mainstream brands; whilst 46% of leaders strongly agreed that staff retention and motivation benefit from purpose in comparison to 27% of mainstream brands.

When purpose is valued, it is likely to be integrated into all aspects of the business model. For example, leaders (60%) are more likely to develop brand purpose via a cross-functional team which involves all departments than mainstream brands (44%). Leaders also recognise that having a purpose-driven strategy can incur extra costs for the business, but 78% of leaders agree that companies should be willing to sacrifice profit for the wider good in contrast to 62% of mainstream brands.

Superficial purpose reaps superficial rewards

If brands continue to make superficial attempts at brand purpose, then they will undoubtedly only see superficial rewards. Our research shows that companies are largely using brand purpose to enhance their customer experience (45%), rather than being motivated by environmental (13%) or social good (10%), or employee wellbeing (14%). 

Brands need to be aware of the dangers and pitfalls of treating brand purpose as a ‘pick and mix’ exercise. Younger demographics have expressed their desire to stop affiliating with brands who do not have a clear or accurate purpose, so ensuring you are clear with strategy, execution and communication is key. Brands that don’t will risk losing customers to new brands with transparent agendas.

A large part of successful brand purpose also comes down to democratisation, to encourage employees to bring their best selves to work. Having a highly-engaged workforce only comes from having understanding, empathy and trust. Valued employees will always deliver better work than those who feel alienated and undervalued by their employer. After all, employees are  your best brand ambassadors. 

Here for the long-run

For brand purpose to truly work, it needs to be embedded into the long-term strategy. This can be done in the following ways:

Have a clear ‘North Star’ vision. This can be laid out on a roadmap so that it can be communicated internally. Having employees understand it is imperative to the execution of the vision, and even better, having them involved in the process so they feel fully involved is crucial.

Brand purpose and leadership: the vision must be supported by the very top level leadership all the way through the business. Having diverse representation is essential to make sure your entire organisation feels seen. 

Focus on employee experience: Understanding your employees needs will help accelerate your vision. Equipping employees with relevant training and new ways of working can help bring brand purpose to new levels.

Embed brand purpose end-to-end: Your products and services need to be an extension of your brand purpose. Ensuring there is cohesion between online and offline experiences is vital for this to be a success.

Be transparent and clear with your marketing and communications: This is arguably what will make-or-break your vision. If communication and marketing efforts are not aligned with your brand purpose, your customers will know immediately. Transparency is key and so making your marketing department an intrinsic part of your brand strategy can save you from being a target of a boycott.